By Paul A. Harris
Portland, Ore., Sept. 7 – ARD Finance SA, a direct subsidiary of Ardagh Group SA, priced an upsized $1.72 billion equivalent two-part issuance of seven-year senior secured toggle notes (Caa2/CCC+) on Wednesday, according to a syndicate source.
The deal included €845 million of notes that priced at par to yield 6 5/8%. The notes pay a 6 5/8% cash coupon and a 7 3/8% PIK coupon. The yield printed at the tight end of yield talk in the 6¾% area.
In addition Ardagh priced $770 million of notes at par to yield 7 1/8%. The dollar-denominated notes pay a 7 1/8% cash coupon and a 7 7/8% PIK coupon. The yield printed at the tight end of yield talk in the 7¼% area.
The size of the combined tranches was increased from $1.57 billion equivalent.
Citigroup was the left bookrunner. Barclays was the joint bookrunner.
Proceeds will be used to redeem the existing senior PIK notes due 2019 and provide shareholder liquidity. The additional proceeds resulting from the upsizing of the deal will be used to repay debt at the operating company, thereby increasing restricted payments capacity at the operating company to service interest at the holding company.
The issuer is a packaging group registered in Luxembourg.
| Issuer: | ARD Finance SA (Luxembourg)
|
| Amount: | $1.72 billion equivalent, increased from $1.57 billion
|
| Maturity: | Sept. 15, 2023
|
| Securities: | Senior secured toggle notes
|
| Bookrunners: | Citigroup (bill and deliver), Barclays
|
| Trade date: | Sept. 7
|
| Settlement date: | Sept. 16
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Roadshow
|
|
|
| Euro-denominated notes
|
| Amount: | €845 million
|
| Cash coupon: | 6 5/8%
|
| PIK coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 710 bps
|
| Call: | Make-whole call at Bunds plus 50 bps until Sept. 15, 2019, then callable at 103.313
|
| Price talk: | 6¾% area
|
|
|
| Dollar-denominated notes
|
| Amount: | $770 million
|
| Cash coupon: | 7 1/8%
|
| PIK coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 574 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Sept. 15, 2019, then callable at 103.563
|
| Price talk: | 7¼% area
|
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